Why does Cambodia use two currencies, and is that changing? History explains much of why Cambodia uses the US dollar alongside the riel. Money was abolished in 1975, and dollars poured in during the early 1990s. Some things are shifting, like riel payments by phone and riel deposits. But the dollar share of broad money has barely moved in 10 years.
What happened
In a Phnom Penh shop, the price tag is in dollars, but the change comes back in riel. Economists call this dollarization. It means people use a foreign currency instead of, or alongside, their own.
In 2025, 90.7% of all bank deposits were in foreign currency, most of it US dollars (National Bank of Cambodia, or NBC, 2025). That leaves only about 9% in riel (our calculation). In 2024, 88.2% of loans were in foreign currency (NBC, 2024). So only about 12 of every 100 were lent in riel (11.8%, our calculation).
Some things are moving toward the riel:
- Phone payments. Bakong is the central bank's digital payment system. In 2024, 49% of Bakong transactions were in riel: 299.32 million of 608.32 million (NBC data via Agence Kampuchea Presse, 2025). This is by number of payments, not by value. The share by value was not published.
- Cash. Since 2020, the central bank has pushed to take small US notes ($1, $2 and $5) out of use. In 2022, one large bank, ABA, stopped giving out small dollar notes at its ATMs and offered riel instead (VOD English, 2022).
- Savings. Riel deposits grew 12.5% in 2024 (NBC, 2024).
The big picture moves slowly. Broad money, or M2, means cash plus bank deposits. Foreign currency deposits were 83% of broad money in 2015, 85.1% in 2024 and 84.4% in 2025 (NBC data). Over 10 years, that share barely changed.
Why two currencies?
The NBC, the central bank, was founded in December 1954. It printed the riel soon after. On 17 April 1975, the Khmer Rouge closed the bank and abolished money completely. For almost 5 years, Cambodia had no currency at all. The riel came back on 20 March 1980 (NBC).
But trust was slow to return. The International Monetary Fund (IMF) points to a lack of confidence in the riel and political uncertainty in the early 1990s (IMF, 2003).
From 1992 to 1993, a UN mission called UNTAC oversaw Cambodia's transition. It cost US$1.6 billion (United Nations Peacekeeping). Aid, private transfers and export earnings also poured in, mostly in dollars. The IMF says Cambodia saw "almost complete" dollarization between 1991 and 1995 (IMF, 2003). In 1995, foreign currency deposits were 56% of broad money (Neak Samsen, Nuppun Institute, 2015, citing NBC data).
Once a currency becomes a habit, it is hard to change. Salaries, rents, cars and bank loans are priced in dollars. Most factory wages are paid in dollars, and exports earn dollars.
Who is involved
- The National Bank of Cambodia. The NBC says wider riel use helps it manage money and prices (NBC, 2024).
- Banks and microfinance lenders. Microfinance lenders give small loans. In December 2016, the NBC set a rule: at least 10% of each lender's loans must be in riel. Lenders were given until the end of 2019, and the IMF says the 10% target still applies (Open Development Cambodia, 2016; IMF, 2025). For the banking system as a whole, about 12% of loans were in riel in 2024, just above 10%. But the rule applies to each lender, and this average does not tell us whether each one meets it.
- Workers. In March 2026, UNDP and the NBC published a survey of 1,068 workers in 114 garment, footwear and travel goods factories.
- The IMF, which supports more riel use but asks for caution.
Risks and open questions
The riel itself has been stable. It averaged 4,110 per dollar in 2023, 4,071 in 2024 and 4,011 in 2025 (NBC). On 6 October 2026, the official rate was 4,061 (NBC). The NBC uses a managed float: the rate moves within a band, and the bank steps in to smooth it.
- Weak policy tools. The IMF says heavy dollar use weakens the NBC's interest rate tools for controlling prices (IMF, 2025).
- Moving too fast. This has risks too. If people earn in one currency and borrow in another, a sudden rate change can hurt.
- Gaps in the data. The sources we checked give no figures on whether each lender meets the 10% rule.
What it means for you
In the UNDP–NBC survey, 89.8% of workers' wages were paid in dollars. But 87.6% of their household spending was in riel (UNDP and NBC, 2026). So every time they change money, they lose a little. The survey estimates the loss at about 1.2% of income.
For example, on a wage of US$250 a month, that is about US$3 every month. This is our illustration, not a wage from the survey.
Different views
How fast should Cambodia move?
- The NBC promotes riel use step by step, while keeping the exchange rate stable (NBC).
- The IMF supports the goal but recommends a "cautious expansion" of riel lending, "currently targeted at 10 percent" (IMF, 2025).
- Ky Sereyvath of the Royal Academy of Cambodia suggests starting with public payments. He warns that rapid shifts could shake the exchange rate (Cambodianess, 2026).
Should the exchange rate move more freely?
- The IMF wants "greater exchange rate flexibility" to absorb outside shocks (IMF, 2025).
- The NBC keeps the rate stable through its managed float. Ky Sereyvath says stability is what makes riel worth using: "If the National Bank can maintain a stable exchange rate, using riel will benefit" (Cambodianess, 2026).
Do workers want riel wages?
- In the survey, 41.5% of workers said yes and 57% said no. About 79% of those who said no cited exchange rate risk (UNDP and NBC, 2026).
About the data
- Deposit shares are for 2025. Loan, Bakong and riel deposit growth figures are for 2024. The exchange rate is from October 2026.
- The riel shares of deposits (about 9%) and loans (about 11.8%) are our calculations: 100% minus the NBC's foreign currency ratio.
- The 90.7% compares foreign currency deposits with all deposits. The 56% to 84.4% trend compares them with broad money. These two ratios cannot be compared with each other.
- The survey covers one sector and one sample, not all Cambodian workers. The 1.2% loss is an estimate, and the US$250 wage is only an example.
